YouTube Is VEVO’s Latest Investor

YouTube is extending its content partnership with VEVO and is also making an investment in the music video company, according to Billboard. The investment, which Billboard and Financial Times had pegged in the $40-$50 billion range earlier this year, would give Google/YouTube a 7% stake in VEVO.

In a statement, YouTube confirmed the investment: “We made an investment in VEVO. We are excited by their future prospects and to provide YouTube users with the best possible music experience.”

It actually prompted Morris to issue the ultimatum that if YouTube did not comply, there were “at least three other companies” who would take VEVO’s videos. These other companies included Facebook, Apple, and Amazon, according to the LA Times.

Not sure how serious the ultimatum was, considering how important YouTube and VEVO are to each other. Based on comScore numbers, VEVO is consistently YouTube’s top content partner. In May, VEVO reached 50.2 million uniques on YouTube. Fullscreen, which came in second place, reached nearly 36.5 million. On the other hand, as Billboard notes, a significant chunk of VEVO viewers come from YouTube, regardless of all of the other distribution points the music video company is offering.

Nevertheless, the relationship has been frosty at times. That shouldn’t be an issue anymore with YouTube placing an investment in the company.

Terms of the deal have not been disclosed, though Billboard reports that VEVO will use the funds to expand internationally as well as create more original music-related content.